Cheshire pursues legal fight

Cheshire Building Society is pressing ahead with its £10m legal case against property advisor Dunlop Haywards and Manchester law firm Cobbetts. Papers have been lodged in the High Court in support of the action against both parties.

Cheshire Building Society is pressing ahead with its £10m legal case against property advisor Dunlop Haywards and Manchester law firm Cobbetts .

Papers have been lodged in the High Court in support of the action against both parties.

The Macclesfield-based mutual is being advised by Addleshaw Goddard and has hired London-based barrister Sue Carr QC. The action relates to an alleged commercial property fraud. The claim arises out of a defaulted loan to Goldgrade Properties in 2005.

Keith O'Brian, audit and compliance director at the Cheshire, the country's 11th largest mutual,said: "We have had defences in from both parties, and after the summer break we'll be pursuing the matter in earnest . It's a single action against the two defendants."

Dunlop Haywards is now part of Erinaceous , which has faced other legal challenges concerning alleged overvaluation of properties. Earlier this year, Erinaceous settled out of court with Nationwide, which launched a £25m claim last October.